If you’ve been paying attention to the news this week you may have heard about something called bitcoin rising in value to over $11,000. You may have then wondered, what the heck is a bitcoin?
Bitcoin is a cryptocurrency, meaning that it acts as a digital form of money not bound to central repository like currency from a nation. It was the first decentralized (meaning all transactions are peer to peer – no banks) digital currency and remains by far the most lucrative and popular even as similar options have emerged in recent years. It can be ‘mined’ by using specialized software, though at this point that process is so laboriously slow that is of no use to the average person.
First created in 2009, its price rose from $.30 in 2011 to nearly $600 three years later, though not before suffering a roller coaster ride of rises and falls. After bottoming out at $224 in January of 2015, it began to rise meteorically earlier this year, surpassing $1,000 in March and $11,000 just this week.
As you can tell, the currency is extremely volatile, making investing a major risk, albeit one that has recently paid off for thousands of buyers. Over 100,000 vendors worldwide accept bitcoin, including Paypal and Microsoft.
Of course with its value rising so quickly it is typically used as an investment rather than a form of currency at the moment, but many believe it could serve as a valid alternative to the dollar, (or euro etc…) in a time where economic certainty is no, well, certainty.
This week Coinsource, the world’s largest bitcoin ATM network, announced it would be installing 20 new bitcoin ATM’s in the state of Georgia. 18 installations in Atlanta and a pair in Athens will bring the state’s total to 101, making it the third largest US market for the currency behind Chicago and New York.
The ATM’s will allow bitcoin users to buy, sell, and trade the currency, allowing some savvy (and brave) investors to put more of their money onto the web and out of traditional banks.
Said Coinsource CEO Sheffield Clark on his company’s southern expansion, “Bitcoin is catching fire and the United States is catching on; everyone wants to invest and get involved. For us, we believe bitcoin has two purposes; one as an alternative form of payment, and two as a form of investment and financial inclusivity for the underbanked and unbanked. According to reports from the FDIC over the past five years, Atlanta, Georgia is in the top ten of most unbanked cities in the country, and more than one in ten households have no involvement with traditional banks. Around 30% of residents are underbanked, meaning they might have checking accounts, but have to rely on other kinds of services like pawn shops, check-cashing and payday loan companies to get cash and credit.”
“This is a major opportunity not only for Coinsource but for the cities of Atlanta and Athens as well. Atlanta is one of the most mature bitcoin ATM markets in the country so it’s exciting to provide our services to people already showing accelerated adoption of the technology. Our goal is to give everyone the equal ability to access bitcoin, particularly in times of record demand, and participate in this soaring new economy. Part of making this marketplace accessible is making sure our fees are less than half that of any other operator, and customers will be given fee-free transactions for first-time use of any new machine.”
See Atlanta’s ATM locations HERE to find one near you, and decide for yourself if you want to take the plunge into alternative currencies, or at the very least kick yourself for not doing so this time last year.
